Green Cross(President&CEO Hun, EunChul) is going to take advantage of its new technology to expand its Chinese business following the development of the North American market, the world’s largest pharmaceutical industy.
On March 9, Green Cross(www.greencross.com) announced it had signed the MOU with Guizhou province in China to invest in the area of cell therapy products on March, 6. The agreement makes the investment in local production and supply the key points.
In addition, it also says that the Guizhou province offers every facility for selection and certification of production units to Green Cross so that the investment may bring successful results.
The MOU seems to result from the coincidence of interests between the two partners. Green Cross has been seeking the advance into the global market while the Guizhou province has attracted foreign investment to build specialized bio zone in China.
The fact that Guizhou province itself offers every facility about investment like certification appears to exercise a great influence for Green Cross to make a decision of investment in the region. Despite increased market access to the Chinese market and its rapid growth, the slow procedure of permission has been pointed out as the reasom of multinational pharmaceutical companies facing challenges in the Chinese market.
Moreover, it is said that Green Cross’ reputation, which has been raised by its business of blodd products for about two decades in China, might work positive for its market expansion.
Green Cross has a plan to promote cell therapy products as its new engine of growth though the organic development and investment in bio companies. The market value of cell therapy products in the world amounts to $100 billion and records 20 percent of growth rate, so Green Cross thinks that it is highly likely to grow further in the future.
“We will phase investment in, given the potential of growth in cell therapy products and the Chinese pharmaceutical market,” said an official from Green Cross, “We will conclude a formal agreement anytime soon.”
by Lee Jae-seung